What Are The Most Popular Cryptocurrencies in Australia - Top 10

Rosemary December 28, 2021 | 08:11

What is the most popular cryptocurrency in Australia? What cryptocurrency laws have been changed in Australia?

What Is The Most Popular Cryptocurrency in Australia? Top 10 Cryptocurrency Exchanging Sites. Photo KnowInsiders

New law for cryptocurrency

Australia will create a licencing framework for cryptocurrency exchanges and consider launching a retail central bank digital currency as part of the biggest overhaul of its A$650 billion-a-day ($463 billion) payments industry in a quarter of a century.

The country will also broaden its payment laws to cover online transaction providers like Apple Inc (AAPL.O) and Alphabet Inc's (GOOGL.O) Google as well as buy-now-pay-later (BNPL) providers like Afterpay Ltd (APT.AX), ending their run of operating without direct supervision.

"If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system," Treasurer Josh Frydenberg said in speech. "Australia must retain its sovereignty over our payment system."

Australia's conservative government is positioning itself at the front of global efforts to rein in large technology companies, while taking a more inclusive approach than countries like India and China, which have criminalised cryptocurrency.

The use of cryptocurrency and non-cash payments has exploded in Australia during the pandemic as people's lives shifted online.

About 55 million non-cash payments are made in Australia every day, according to government data, with almost half the population using their phones to make payments. The number of Australians transacting in cryptocurrency has surged 63% so far this year, compared with last year.

Where to store your bitcoins

If you’re thinking of getting into the Bitcoin game, it’s probably a good idea to find a secure way of storing your bitcoins. It’s generally recommended to consider other ways to store your cryptocurrency beyond storing them on the exchange you purchase them from. A more secure option is to store it in a digital Bitcoin wallet. A wallet is a place to securely store bitcoin outside of a crypto exchange. Not all wallets are created equally and some have more features than others. Certain wallets are only for Bitcoin and some offer the ability to store numerous types of altcoins. For a full explainer on how wallets work, see our latest article on wallets and how to set one up.

There are a few options available on the app stores for these wallets as well as software on laptops or computers, so do a bit of comparison shopping to find which one best suits your needs. You can get wallets apps that protect small amounts with a private key stored on your phone or secure device. These also have the added benefit of scannable QR codes, which saves time on entering long bitcoin addresses when you want to send money.

What is the most popular cryptocurrency in Australia?

Unsurprisingly, bitcoin is still the most popular and well-known cryptocurrency, with 21.1 per cent owning it and 89.1 per cent of Australians saying they have heard of bitcoin.

In second place in ethereum, with 11 per cent of people owning the cryptocurrency, up from 5 per cent in 2020.

According to the survey, Bitcoin remains the most well-known and popular cryptocurrency, ahead of Ethereum.

The 24- to 34-year-old age group was the most trusting of crypto, with 27.6 per cent saying they bought in to get rich, while people aged 65-plus remain sceptical.

Australia is more bullish on cryptocurrencies than most other countries around the world, according to a survey published by comparison site Finder .

The survey, based on the site’s Cryptocurrency Adoption Index, measures the growth of crypto globally through a regular survey of more than 41,600 individuals across 22 countries.

Finder’s survey found Australia has the third-highest rate of crypto ownership at 17.8%, topping such countries as Indonesia (16.7%) and the city of Hong Kong, a special administrative region of China (15.8%).

What is Ethereum?

Ethereum is one of literally thousands of cryptocurrencies that have sprung up over the last few years. As the brainchild of 8 co-founders, Ethereum made its debut in 2015. The cryptocurrency or platform is called Ethereum, while the individual unit is called an ether (2 ether, 17 ether, etc.)

Ethereum operates on a decentralized computer network, or distributed ledger called a blockchain, which manages and tracks the currency. It can be useful to think of a blockchain like a running receipt of every transaction that’s ever taken place in the cryptocurrency. Computers in the network verify the transactions and ensure the integrity of the data.

This decentralized network is part of the appeal of Ethereum and other cryptocurrencies. Users can exchange money without the need for a central intermediary such as a bank, and the lack of a central bank means the currency is nearly autonomous. Ethereum also allows users to make transactions nearly anonymously, even if the transaction is publicly available on the blockchain.

While the whole field is referred to in terms of currency, it may be more useful to think of crypto as a token that can be spent for a specific purpose enabled by the Ethereum platform. For example, sending money or buying and selling goods are functions enabled by the coin. But Ethereum can do a lot more, and it can also form the basis for smart contracts and other apps.

What does Ethereum do?

Ethereum can power a number of applications offering a wide range of functions:

Currency: With a cryptocurrency wallet, you can send and receive ether or pay for goods and services, if the digital currency is accepted as payment. Some platforms, such as Coinbase, even allow you to take custody of your coins in a digital wallet, so you can make them less exposed to hackers, in theory.

Smart contracts: Smart contracts are a kind of permission-less app that automatically executes when the contract’s conditions have been met.

Digital apps, or dapps: Ethereum powers digital apps that allow users to play games, invest, send money, track an investment portfolio, follow social media and more.

Non-fungible tokens: These tokens can be powered by Ethereum and can allow artists or others to sell art or other items directly to buyers using smart contracts.

Decentralized finance: By using Ethereum, some people may be able to avoid centralized (government) control over the movement of money or other assets.

Again, it might be more accurate to think of Ethereum as a token that powers various apps rather than as merely a cryptocurrency that allows users to send money to each other.

Where do ether coins come from?

As of October 2021, there were about 118 million ether in existence. And while new coins could be “mined,” the total annual issuance is limited. That contrasts sharply to Bitcoin, where a maximum of 21 million coins can be mined and new issuance becomes harder each year. And it contrasts still further with Dogecoin, where issuance is completely unlimited.

Ether coins and those of other cryptocurrencies are “mined” by the computers on the network. They perform mathematical calculations that effectively unlock coins or fractions of coins.

That setup is changing, however. Both the Bitcoin and Ethereum blockchains use what’s called “proof of work” to mine new coins and validate transactions. It’s an expensive, energy-intensive and time-consuming process that can clog the network. So the minds behind Ethereum have decided to change their system to a “proof of stake” system, which is nicknamed Ethereum 2.0.

The new system makes it difficult for miners to generate new coins. Instead, those who own the currency basically “stake” their own crypto holdings and validate transactions. Stakers could lose their investment if they verify transactions that don’t conform to Ethereum’s rules.

It’s expected that the changeover as well as transaction fees being “burned” – destroyed forever – will lead to fewer ether in existence and a deflationary spiral, causing the crypto to soar.

Is Ethereum a good investment?

Ethereum has risen significantly over the last few years, so those who bought-and-held years ago have done well. But rather than look at yesterday’s price moves and be fearful of missing out, it’s important to understand what you’re investing in. And on this basis, those who buy Ethereum are buying a cryptocurrency that is not backed by any hard assets or cash flow.

That may sound trivial, but it’s the key difference between stocks and cryptocurrency. A stock is a fractional ownership in a business, so its performance over time is due to the ongoing success of that business. If the business grows its profit, its stock is likely to follow that growth over time. Stockholders have a legal ownership stake in the assets and cash flow of that business.

In contrast, Ethereum – and most other popular cryptocurrencies – are backed by nothing at all. The only thing holding up the price is the optimism of other investors, all of whom think they’ll be able to sell the cryptocoin for more money later to someone else – what’s called the “greater fool theory” of investing. Speculation is the only thing driving Ethereum and other cryptos higher.

For this reason, among others, investing legend Warren Buffett won’t touch cryptocurrency and have even gone on record to call it “rat poison squared.” Buffett’s approach is a good cue about the enduring value available in cryptocurrencies.

Bitcoin is a digital currency, a decentralized system that records transactions in a distributed ledger called a blockchain.

Bitcoin miners run complex computer rigs to solve complicated puzzles in an effort to confirm groups of transactions called blocks. Upon success, these blocks are added to the blockchain record, and the miners are rewarded with a small number of bitcoins.

Other participants in the Bitcoin market can buy or sell tokens through cryptocurrency exchanges or peer-to-peer.

The Bitcoin ledger is protected against fraud via a trustless system; Bitcoin exchanges also work to defend themselves against potential theft, although high-profile thefts have occurred.

Top 10 Bitcoin Trading Sites in Australia

1. Binance Australia

Binance Australia is one of the most popular trading sites for Australia and worldwide. Residents of Australia are able to use the Binance website and mobile apps to trade Bitcoin with other cryptocurrencies. Many people use Binance for trading as it has a trusted reputation worldwide and low fees, high trading volume & lots of cryptos trading pairs.

2. Swyftx

Swyftx is an Australian based crypto exchange where you can buy, sell & trade 100+ crypto-assets. Swyftx is an AUSTRAC registered Australian crypto currency exchange & trading platform with tiny spreads, low fees and non-inflated market prices. Trade with stop losses, take profits and triggered orders on a mobile & desktop ready modern web based crypto currency exchange.

3. CoinJar

Coinjar is a very well-known exchange in Australia and the reason why it is so popular is due to the fact you can purchase Bitcoin via BPAY for just a fee of 1%, PayID supported, Credit/Debit card supported and 0% trading fee on CoinJar Exchange.. People claim that Coinjar is very easy to use as it has a clean interface, therefore, making it easier for beginners. The platform has a good reputation and has been around for a long time since 2013, so the aussie locals find them to trustworthy. CoinJar supports AUD and GBP fiat currencies and supports up to 24 different cryptos.

4. Crypto.com

Crypto.com Exchange is provided by one of the worlds fastest growing exchanges with over 10 million users worldwide. The exchange allows you to buy, sell and trade over 100 cryptocurrencies via your web browser. The exchange is linked to the crypto.com mobile app so you can transfer coins from the app to the exchange for trading.

5. Zipmex

Zipmex is a regulated digital asset exchange in Australia offering high liquidity, low spreads, instant fiat deposits and withdrawals. Their platform has trading fees as low 0.2% per transaction and your digital wallet assets are also insured up to US$100M through BitGo.

6. Changelly

Changelly will allow you purchase Bitcoins; however, it will only let you buy it with digital currencies like Litecoin, Altcoins, Dogecoin, and many other digital currencies. The benefits of using this service is that it is fast and easy to buy Bitcoins with Altcoins, also the fees are reasonable for bigger traders. The only disadvantages are that you need digital currency to purchase Bitcoins.

7. BuyaBitcoin

BuyaBitcoin is an Australian Bitcoin exchange and you can use this service to purchase Bitcoin. The pros of using this service are that your coins will be delivered within an hour also the only way to verify is a mobile number to increase the security. In addition to this, the service is also easy to use and has very fast performance. However, many people have said that the fees are too high which is 4.9%.

8. Coinmama

Coinmama is a great Bitcoin trading site as it allows customers in nearly every country to purchase Bitcoin with a debit or credit card. The advantages of using Coinmama is the fact that it allows anyone to buy Bitcoin with a debit or credit card and they are seen to be reliable and a trusted broker. However, they have some of highest fees for a credit or debit card Bitcoin broker.

9. LocalBitcoins

LocalBitcoins is a service that helps you match Bitcoin buyers and sellers, the main payment method for purchase is cash deposit. On the other hand, users will be allowed to advertise exchanges for the payment method they prefer. LocalBitcoins let the users purchase Bitcoins via an in-person meeting while it is being facilitated and secured by LocalBitcoins. The advantages of using LocalBitcoins is that it is private and in-person exchanges require no personal information. However, the disadvantages are that you have to beware of scammers and it is more difficult to purchase larger amounts of Bitcoin when compared to larger exchanges.

10. Coin Loft

Coin Loft is an Australian Bitcoin broker where you can purchase Bitcoin with credit card, cash deposit, POLi, and Flexepin. Using Coin Loft can be beneficial in various ways such as when you purchase Bitcoin with cash, your coins will be delivered within an hour. It also supports a wide range of payment methods and is the only Australian service that accepts Flexepin. On the other hand, the disadvantages are that is has a rather high fees, such as the 4% fee for cash purchases and 9% cumulative fee for credit card purchases. You will also have to verify your identity even for cash payments.